asked the Minister for Industry and Commerce what incentives there will be under EEC conditions for (a) German, (b) British and (c) American industrialists to establish industries in this country and what particular advantages Ireland can offer to them under such conditions.
Ceisteanna—Questions. Oral Answers. - Establishment of Industries.
97.
As already indicated to the House by the Minister for Foreign Affairs, it is our view that the scheme of grants for industrial development is compatible with the EEC Treaty. The retention of the export tax reliefs scheme until the expiry of the statutory period, that is 1990, is at present the subject of negotiations with the Community. Pending the outcome of these negotiations, I am not in a position to comment further. The incentives we can offer, coupled with a plentiful labour force and our general environmental advantages, will be major factors in inducing industrialists from the countries mentioned to locate their projects here.
An important aspect of the Community's present activity is the formulation of a regional policy acceptable to all member countries. Implementation of a common regional policy will aid countries such as Ireland to advance more rapidly to the stage of development prevailing in other member countries.
98.
asked the Minister for Industry and Commerce what effect EEC entry will have on the industrial estate at Shannon.
Membership of the enlarged European Communities should increase the attractiveness of the Shannon industrial estate as a location for industry and should not adversely affect the industries already established there.
99.
asked the Minister for Industry and Commerce what industries may be adversely affected under EEC conditions.
100.
asked the Minister for Industry and Commerce what industries may expect improved trading conditions within the EEC.
101.
asked the Minister for Industry and Commerce if he will state, in the light of information available from the Committee on Industrial Organisation, the COIP studies and the consultations with industry in connection with the Second and Third Programmes, what proportion of employment under each of the headings (b), (c), (d) and (e) in question number 95 is likely to be redundant as a result of EEC membership; what increases in employment, if any are likely to occur in these industries as a result of EEC membership; and what increases in employment are likely to occur in these industries between now and the end of the EEC transitional period.
102.
asked the Minister for Industry and commerce what proportion of employment in manufacturing industries other than those listed under headings (b), (c), (d) and (e) in question number 95 is likely to be redundant as a result of the Anglo-Irish Free Trade Area Agreement; what additional redundancy, if any, is likely to occur as a result of EEC membership; what increase in employment are likely to occur in these industries as a result of EEC membership, and what increase in employment are likely to occur in these industries between now and the end of the transitional period.
I propose with your permission, a Cheann Comhairle, to take Questions Nos. 99, 100, 101 and 102 together.
The Government have been active for years past in encouraging and assisting industry to prepare for free trade. The investigations which have been made show that the standard of efficiency in most Irish industrial sectors is uneven and varies from firm to firm within individual sectors. Even in the most progressive sectors there are firms whose ability to survive in free trade conditions appears doubtful. Furthermore, internal changes in a firm's management can often within a short time radically alter for better or worse their efficiency and ability to withstand competition. Changes in consumer demand or technical developments can also affect the future prospects of a firm or indeed of an entire industry. The prospects for industry will depend to a very considerable extent on the use made by all parties in industry of the period remaining before the full impact of free trade to improve efficiency under every heading and on the enterprise of individual firms in taking full advantage of the opening up of tariff-free entry to the much wider markets of the enlarged European Community.
Because of the many imponderables involved in a quantitative assessment of the effects on individual industries or industry in general of the Anglo-Irish Free Trade Area Agreement and of EEC membership, the results would necessarily be subject to many reservations and qualifications. I do not believe that the preparation or publication now of estimates of this kind would serve any practical purpose.
In our accession negotiations with the European Communities we sought special arrangements extending beyond the standard transitional period for the motor assembly industry. Agreement has been reached which enables the existing scheme for that industry to be retained, with some modification, up to 1st January, 1985. This ensures the maintenance of motor assembly here for a considerable period and will provide adequate time for the firms in the assembly and supplying industries to take any necessary action on adaptation and reconversion. We have also sought special arrangements within the transitional period for the Irish steel industry. I am happy to state that the Community have now agreed to the continuance for five years of our restrictions on the export of iron and steel scrap. They are still examining our request for continued access during the period to non-Community sources of materials and for transitional safeguard provisions to meet any difficulties that might arise as a result of the reduction or elimination of customs duties.
There are provisions in the Anglo-Irish Free Trade Area Agreement both in Articles I (5) and XIX to deal with difficulties in particular industries. The arrangements agreed with the EEC which provide for the gradual elimination or reduction of protection over the transitional period will constitute in themselves an important safeguard for Irish industry. Furthermore, during the transitional period should an Irish industry encounter serious difficulties it will be possible to have recourse to safeguard arrangements similar to those which applied to the existing member States. Thus a provision will be available which will authorise the Commission, at the request of the member States concerned, to determine by emergency procedure and without delay, the protective measures deemed necessary to rectify the situation and to adapt the sector concerned to the Common Market economy.
I do not expect that, taking account of the arrangements I have outlined, significant redundancies need occur in industry as a result of the Anglo-Irish Free Trade Area Agreement or our accession to the European Communities. It would not of course be possible to protect firms from failure to adopt to free trade conditions——
Adapt? Failure to adapt to free trade conditions?
To adopt to.
The Minister is answering the question.
The Deputy is trying to be smart.
No, he is not.
The Parliamentary Secretary was pretty clever today when he would not answer Deputy Blaney's question.
You adopt something but you adapt to something.
I am grateful to the Deputy. It would not of course be possible to protect firms from failure to adapt to free trade conditions using all the aids that have been provided to assist them. Nor would it be possible to insulate industries or firms within particular industries from the effects of changes in demand or technical developments, which can occur independently. Neither would it be reasonable to expect that every Irish firm can survive in free trade. The increased export opportunities which will be available to all our industries in the new trading environment must be grasped so that any losses in the home market will be offset by the development of export industries, both existing and new. It is the Government's conviction that given the proper response from industry both management and workers, the progressive gains from membership of the European Communities should outweigh any losses that might occur.
Do I understand the Minister to suggest that what he has read out, is inter alia, an answer to questions 101 and 102?
Yes, to 99, 100, 101 and 102.
Could the Minister not find a shorter way of answering by saying he does not know what changes in employment there will be? I listened with reasonable care. Am I right in saying that no attempt is made in his reply to quantify the employment effects of EEC membership? Must I assume that if the Minister has not attempted to quantify that he does not know what the effects will be, cannot estimate the effects and that he is walking this country into a situation without even attempting to assess what the effects will be?
I do not accept what the Deputy says at all.
Is there any quantified assessment of the likely effects on employment, up or down, in the Minister's reply? Have I missed something?
I do not know whether the Deputy was in for the complete reply or not.
I was.
I dealt quite extensively and exhaustively——
Is there any figure in it at all? Just one?
There are the figures 99 to 102.
(Interruptions.)
What about the 140,000 in the first couple of years?
Would the Minister not agree—if he would put down his brief for a moment and talk common sense—that my questions were designed to get some assessment of the adverse and beneficial effects of EEC membership and free trade and that his answer has not given us any indication and is he suggesting that the COIP studies currently being carried out are useless for this purpose and that the CIO studies are also totally out-of-date and that he has no information to go on?
I am sorry if the Dáil office got the wrong questioner but we seem to be mixed up. I am not answering questions put down, ostensibly anyway, by Deputy FitzGerald.
May I not ask a supplementary?
The Deputy did say "my question" asked.
The question this party have put down on this subject.
I see. That is why the Deputy asked me to put down the brief and not look at it.
Is there any reason why the Minister could not make some assessment of the employment effects? Is he aware that the CIO studies did give a detailed assessment of the employment effects? Is he suggesting that these are now so out-dated as to be useless? If so, are the COIP studies not replacing them in this effect? Is the Minister taking no steps to assess the effects of EEC membership and the free trade area?
The COIP studies are a continuous operation. In fact, we have had a number of reports of this nature. Some of them have yet to come in. They have all been set out in relation to three or four of the industries covered but it would be wrong of me in the House to endeavour to specifically quantify because——
You quantified 100,000 new jobs a few years ago.
There was no trouble quantifying then.
Will the Minister be allowed to answer or not?
May I ask the Minister, seriously, is it his intention, if he is unable to produce any kind of figures now, that in the White Paper on EEC membership there will be such an assessment? Does he seriously expect this country to make up its mind without being told, even in broadest terms, what the employment effects will be and does he not agree that it is vitally important that the White Paper should assess both the benefits in employment and the losses in employment and show the net effect which I believe will be beneficial? I want to hear the Government's view. It is not up to the Opposition to tell the country what the results will be. It is the Government's job. Are the Government going to do this job in the White Paper? The Minister's reply would suggest to me that they have no intention of doing so and no ability to do so.
Negotiations are still going on.
What has that got to do with it?
To try to quantify the outcome while there are certain matters still to be ironed out has a lot to do with it?
Which ones? Fisheries?